MOVE Q3 2026 earnings call transcript, November 12, 2026

Pricing follows from the model. We run open weight models on our own infrastructure and price at a material discount to Frontier Labs while still pricing at a significant margin above the cost of serving rather than charging. Premium for excessive access to a closed model. And switching is deliberately easy. TokenFactory is compatible with both the OpenAI and Anthropic API conventions, so a developer changes an endpoint, a key. And a model name, and their existing code and tools. CloudCode, Codex, AIDR, keep working. It's still early. We're weeks past launch, and the first customers are telling us why it works for them. One, the chief executive of an engineering firm. told us speeds and availability made TokenFactory reliable enough to become an execution layer in their workflows and that knowing their code is not used for training was non-negotiable. Our focus over the next two. Quarters is demand. Onboarding partners and channels first, then direct enterprise sales, and continuing to ship against the roadmap. We are not commenting on TokenFactory revenue yet, and we expect a meaningful contribution to begin in 2027. Turning now to security and our assured AI solution. The dirty secret of AI is, at best, data is encrypted at rest and in transit, and then decrypted before it is processed inside the CPU, the GPU, and stored in memory. Weights, fine-tuning data, and prompts are all exposed in those moments. Every provider asks you to trust their policies and their peoples. We're building assured AI so that customers do not have to.

Trusted execution environments to prove, cryptographically, that no one, including Corvex, has access to a protected model or the data it processed. In March, we were among the first companies to complete a verified production deployment of confidential computing on... ...NVIDIA HGX B200 systems with CPU and GPU attestation through Intel Trust Authority, NVIDIA NRAS, and encrypted NVLink traffic between GPUs. We have been running protected workloads for certain customers... ...for more than a year. We are integrated and assured AI into TokenFactory so that lower cost inference and verifiable privacy come together in a single platform. Today's standard TokenFactory endpoints... ...run with zero data retention. And the confidential computing layer is what makes the operator access not just out of policy but impossible. The customers who care most, regulated enterprises, financial firms, and public sector... ...organizations are also the customers with the strongest and most durable relationships once you are in. We expect to have proof points to share over the coming quarters. Turning now to the three items the engineering team delivered this quarter. First, on Blackwell, we completed delivery of a multi-year cluster announced on August 4th, including the liquid-cooled HGX B200 capacity. That cluster has been fully in production since July 29th. Second, on Midwest One, our real estate team under Garrett Brahms is converting an existing enterprise data center into a liquid-cooled AI-ready facility, on track to be ready for service in the fourth quarter of 2026.

Third, on... Our platform software, the next version of our cloud management software, which we said in August had moved from planning into execution, remains in execution and on track, with the first end-to-end stack now being deployed in our lab. It will serve as the basis of all of our deployments moving forward and the base on which we continue to develop our assured AI security offerings for both cloud and inference customers. Finally, in the third quarter, we received notices of allowance for two patents covering So, now we have to talk about the fact that mines are pushed into E où est le premier de vie et il est possible de faire de ces deux prions pour les milliers de vingt-à-visier ? en Corvix's technology, bringing our portfolio to two allowed patents and ten pending applications. With that, I turn it over to Chance. Chance?

As I said at the top, the useful comparison this quarter is sequential. So I will compare the third quarter to the second quarter throughout. Total revenue for the third quarter was $5 million, compared with $3.8 million. In the second quarter, all of it came from AI platform and services. For the nine months, total revenue was $9.3 million. The sequential increase reflects a full quarter of the capacity that came online during the second quarter. And partial quarter contribution from the final tranche of the Blackwell cluster which came online in late July. That timing is also why third quarter revenue is below one quarter of the $22 million contracted annualized revenue figure we gave you in August. A portion of that capacity. was live for only a part of the period. Revenue was in line with what we indicated in August. Contracted annualized recurring revenue or contracted ARR on live compute was $21.6 million. as of September 30 and is $21.7 million as of today. The definition is unchanged. The annualized value of fixed contractual fees on capacity that has been delivered, accepted by the customer, and is generating revenue as of the stated date. It excludes contracted capacity that is not yet live. It is a point-in-time operating metric, not a forecast, and not a gap measure, and it will not equal annualized gap revenue in any quarter where capacity comes online mid-period. Going forward, we will give you both the quarter-end figure and the as-of-today figure.

Turning now to expenses. Cost of revenue for AI platform and services, excluding depreciation and amortization, was $2.5 million. Compared with $2.1 million in the second quarter. Depreciation and amortization was $2.9 million compared with $2.7 million in the prior quarter. Technology and infrastructure expense was $1.3 million compared with $1.4 million. Sales and market. Marketing was $0.8 million compared with $0.7 million. And general and administrative was $14.8 million compared with $12.1 million. As I explained last quarter, G&A is dominated by non-cash stock-based compensation. from the replacement equity awards issued at the merger. Total stock-based compensation in the quarter was $11.3 million, of which $9.3 sat in G&A. The remaining expense from those awards approximately $143.6 million as of the merger is recognized through 2030, so you should continue to expect a large, non-cash, and reasonably predictable charge each quarter. The awards themselves are detailed in note 12. of the 10-Q, and I would point you to the share count rather than the INCIP statement to understand their economic effect. Loss from operations was $17.4 million. Interest expense was $0.3 million, which is new this quarter. and reflects the equipment financing I will describe in a moment, including amortization of financing costs. Net loss for the third quarter was $17.5 million compared with $12.8 million in the second quarter. Net loss attributable to common stockholders.

was $17.5 million. Adjusted EBITDA was negative $3.2 million for the quarter, flat with the second quarter. The definition is unchanged and the reconciliation is in the press release and will be in the 10Q. Now turning to the balance sheet and cash flow. We ended the quarter with $42 million of cash in cash equivalent, compared with $21.7 million at June 30, plus $0.7 million of restricted cash. The increase reflects the... approximately $31 million of net proceeds from our private placement we closed in early September, and $6.9 million of net proceeds from equipment financing, offset by $9.8 million of capital expenditures and $7 million of operating cash use. Property and equipment net was $39.1 million, compared with $31.4 million. We ended the quarter with $6.9 million of debt, compared with none at June 30. This is the equipment financing for the project. The Blackwell expansion we announced on August 4th, held at the project level, secured by the equipment and the related customer contract, and is non-recourse to Corvex, Inc. Finance lease liabilities were $8.5 million, and operating lease liabilities were $4.5 million. Deferred revenue was $3.2 million, $1.9 million current, and $1.3 million non-current, compared with $3.7 million at June 30. The decrease reflects recognition of previously received customer prepayments. As the capacity under those agreements generates revenue. Cash used in operating activities was $7 million in the quarter, compared with $5.3 million in the second quarter. This includes approximately $1.8 million.

of payments to wind down our legacy connected devices business. Approximately $2.5 million in rent prepayments. And $1.2 million of prepaid software. This was offset by a $2.8 million vendor. Fund collected in July. Capital expenditures were $9.8 million including capitalized software of $0.2 million. Turning now to our capital plan. I said in August that scaling this business will require additional capital. And that our funding requirements depend on the pace and structure of expansion. The principle is one we described in August. Each project is underwritten to clear its cost of capital before we sign. And we fund it as far as possible with customer prep. Payments and asset level debt before we consider equity. Turning now to our capital structure. As of November 10th, 2026, we had approximately 39.1 million shares of common. Stock outstanding in approximately 21,800 shares of series D preferred stock outstanding convertible into approximately 21.8 million common shares. Approximately 60.9 million shares on an as converted basis. That compares with approximately 56.6 million as converted at July 8th. And the change reflects the September private placement of approximately 4.3 million as converted shares at $7.75 per share. On the at-the-market facility we announced on October 14th, we have not used it to date. We put it in place to give us fast, opportunistic access to equity in measured amounts, primarily to fund the equity portion of specific deployments with attractive returns.

rather than general operating needs. We will be disciplined about when and how much we use it. On internal controls, the material weakness disclosed in our 2025 Form 10 remains unremediated as of this quarter's filing. In August, I told you our plan. Engage an advisory firm, complete risk assessment and scoping during the third quarter, then move to control design and documentation, then testing. We completed the risk assessment. Scoping in the third quarter. We are now designing and documenting controls across entity level, business process and IT general controls, starting with order to cash and building those controls into our new procure to pay and ERP systems. As they go live, we expect to begin testing operating effectiveness in the first half of 2027 remediation will not be complete until the controls have operated for a sufficient period and have been tested. We will keep updating you each quarter until this is closed. With that, I will hand it back to Jay.

Let me close the way I closed in August, because the point has not changed while the evidence has. The bottleneck in AI infrastructure is not demanding and it's not chips. It's the ability to put a finished, energized data center in the same place and time as hardware, software, and a creditworthy customer, and to deliver this union reliably and on the customer's time frame. In August, that was the description of the job. Today, it's a description of the quarter. 6.1 megawatts of critical IT capacity scheduled to come into service, advanced discussions with partners to take that capacity, a product launched on schedule, and funding structured around prepayments and asset-level debt before equity. What is still in front of us has not changed either. Our capacity needs to grow by multiples. Our revenue is still concentrated in a small number of customers. Token Factory has launched, and we're focused on... ...scaling this product. Our controls work is underway, but not finished. None of that is hidden, and none of it is news to us. We remain excited, though, to tackle these challenges and increase shareholder value by doing so. With that, Operator, we're ready to take...

Your first question comes from the line of Bill Pepinastoso with Chardin. Your line is open. Please go ahead.

comes from the line of Kingsley Crane with Canaccord Genuity. Your line is open. Please go ahead.

This concludes today's call.